It’s clear in the USA that health insurance costs are rising. Health insurance is already an annual cost that already strains many household budgets, and the price is only going up before our eyes. Mid level plans through the healthcare.gov exchange will mean premiums jump up by about 25% on average this year, which is a sobering thought for many Americans.
While Americans are struggling to pay these rising costs, health insurance companies and their investors are reaping a huge profit. Aetna, the third largest insurance company in the US, reported a $734 million in profits on $15.8 billion in revenue for the three months that ended Sept. 30. They are all raking in billions while blaming Obama car for losses, claiming that they have lost billions as a result of the Affordable Care Act. However, their profits are at an all time high.
The health insurance industry has said that the Affordable Care Act is to blame for rising prices and their losses, however, their profits are still soaring. They also claim that customers are making heavy use of medical services, more than the industry anticipated, costing health insurance companies revenue and using that to explain next year’s premium increases. Millennials are also accused of making things worse. When you think about all of the young, healthy people who don’t want to pay for any insurance because they realized it’s much cheaper to just pay when the time comes, it does make a little sense that insurance companies would get scared and begin to up their pricing. However, the cheek they have to claim that corporations are losing money because of Obamacare ignores the staggering profits and compensation packages that health insurers continue to collect. This is not a good thing! Health insurance companies could make a mint while remaining non-profit organizations (not that we’re saying they should) – all you have to do is look at non profits like Mayo Clinic to see just how profitable they can be. UnitedHealth claims that Obamacare has reduced its 2016 earnings by $850 million, and is going out of business next year as a result. While they might have $850 million less than they wanted, UnitedHealth’s profits are still soaring. Putting it plain and simple, health insurance costs are so high because of the desire for profit.
With so much greed in the industry, prices continuously rise along with the profits. One health insurance company alone could pay for the insurance of every single American for days with the money that they make. They have decades of profit ahead of them.
The whole system needs to be revamped if everybody is going to benefit from a fair system. The insurance companies that snubbed Obamacare were not losing money. They just weren’t making as much as they wanted to make!
It’s more than wrong to allow healthcare profits to drive the system. Pricing many people out of healthcare and then blaming it on sick people who signed up for ACA while companies and investors make billions needs to be stopped.